Construction ramping up on Golden Pass LNG project

Golden Pass LNG released a project update via its social media on Monday.

“In Sabine Pass, Texas, construction is ramping up on the Golden Pass LNG export project,” the JV said.

“We are committed to a safe and successful completion of this world-class facility,” it said.

Golden Pass LNG did not provide further details.

State-owned QatarEnergy owns a 70 percent stake in the Golden Pass project with a capacity of more than 18 mtpa and will offtake 70 percent of the capacity, while US energy firm ExxonMobil has a 30 percent share.

A joint venture of Chiyoda, McDermott, and Zachry won the EPC contract to build the three Golden Pass trains worth about $10 billion next to the existing LNG import terminal.

However, Zachry Holdings said on May 21 that it had filed for bankruptcy, initiating a structured exit from the Golden Pass LNG export project due to “financial challenges” related to the facility’s construction.

Golden Pass LNG told LNG Prime on July 25 that it will ramp up construction activities at the LNG terminal after a bankruptcy court approved a settlement agreement with Zachry.

First LNG

In August, ExxonMobil’s CEO Darren Woods said the partners were expecting to start LNG production at their terminal on the US Gulf Coast near Sabine Pass in the second half of 2025.

Asked about the Golden Pass project during ExxonMobil’s second-quarter results call, Woods said the joint venture “is in the process of kind of restaffing and getting started back up again.”

“Obviously, we’re in the very early days of that. So there’s still more work to be done. And of course, the teams are very focused on getting back to work, effectively executing and bringing that project in as quickly as they can and as close to the original schedule as they can,” he said.

In February, Woods said that “train 1 mechanical completion is expected at the end of 2024 with first LNG in the first half of 2025.”

“Right now, our estimate is we’re going to see about a 6-month slippage,” Woods said during the call.

Woods said that the JV had anticipated “kind of first LNG in the middle of next year.”

“We now are looking at probably the back end of 2025 for first LNG,” he said.

Seeking more time

Golden Pass LNG recently asked FERC for an extension of time to place into service its giant LNG export facility.

The JV requests that the Commission amends its prior authorizations to further extend the deadline for placing the export project facilities in service until no later than November 30, 2029.

Golden Pass LNG said this period accounts for both the delays caused by the bankruptcy filing of Zachry Industrial, “remaining schedule uncertainties related to the transition to a new lead contractor (CB&I), and other possible delays outside of GPLNG’s control that may occur such as potential hurricane impacts, and for commissioning and start-up activities.”

Golden Pass LNG said the additional time will allow for the rehiring and remobilization of over 4,000 skilled workers and provide for potential uncertainties such as severe weather or hurricane delays when crews may not be safe on site.

The JV said construction of the export project facilities is about 80 percent complete.

Golden Pass LNG said construction on Train 1, including the utility and export terminal facilities necessary to produce and load LNG, is about 83 percent complete, with construction on Train 2 about 46 percent complete and Train 3 about 31 percent complete.